If you become insolvent, it means you are unable to pay your debts when they are due. If this happens, you should consider the various insolvency options available. It is important you do this quickly to ensure the debt does not increase.
For an individual, there are three debt solution options available. These are:
- Debt Relief Notice (DRN), when the debt is under €35,000
- Debt Settlement Arrangement (DSA), when the debt is unsecured
- Personal Insolvency Arrangement (PIA), for both secured and unsecured debts.
When deciding what option to choose, you should consider the:
- level of your debt
- type of debt
- level of your income
- value of your assets.
The Insolvency Service of Ireland's website Back on Track has more information about these debt solutions options. They also have a list of Authorised Intermediaries (AI) and Personal Insolvency Practitioners (PIP) who can help you choose the best debt solution.
If you are insolvent and still consider these debt solutions unsuitable, then bankruptcy may be the only alternative option remaining.
Revenue's Insolvency Unit
The Insolvency Unit for Revenue is located in the Collector General’s Division. They will review the debt solution option submitted by your AI or PIP. Following this review, they will decide whether to include the debt you owe to Revenue in the proposed arrangement.
Insolvency for companies
If a company is insolvent the directors should consult their agent and consider the various insolvency options available. It is important that this is done promptly to ensure debt does not escalate.